Arkansas Senate Bill SB101

Arkansas 2022 Regular Session

• Introduced: 2/16/22
• Refer: 2/16/22
• Report Pass: 3/7/22
• Engrossed: 3/7/22
• Enrolled: 3/8/22
• Chaptered: 3/8/22
• Passed: 3/8/22

Caption

To Amend The Revenue Stabilization Law; To Create Funds; And To Make Transfers To And From Funds And Fund Accounts.

Impact

The passage of SB101 would amend existing Arkansas laws regarding fund management, ensuring that state budget allocations are not only beneficial but also sustainable. It establishes a structured process for the management of surplus funds, which is crucial for maintaining fiscal discipline within state government. The bill will impact several areas within the state's financial framework, including how funds are created, allocated, and utilized, thereby potentially altering the financial landscape for local governments and services reliant on state funding.

Summary

Senate Bill 101 is a legislative proposal aimed at amending the Arkansas Revenue Stabilization Law. The bill focuses on the creation of specific funds and outlines processes for the transfer of money to and from various fund accounts. One of its key provisions is the establishment of the 'EBD or Contingency 3/5 Vote Set Aside,' which will accumulate funds to ensure proper fiscal management and stability within the state's budget. Additionally, it mandates that the General Assembly retains oversight over the maximum appropriations for state agencies, reinforcing legislative authority over financial allocations in the state budget.

Sentiment

The sentiment surrounding SB101 appears to be largely supportive from those in favor of efficient state financial management, particularly from legislators advocating for clear budgeting processes. Officials appreciate the enhancements in forecasting revenues and fiscal planning. However, concerns have been expressed by some stakeholders regarding the implications of centralized control over funds, fearing that it may limit local fiscal autonomy and flexibility in addressing community-specific needs.

Contention

Notable points of contention with SB101 primarily revolve around the required legislative approvals for fund transfers. While many view the legislative oversight as a necessary check on state funds, there are voices arguing that it may create unnecessary bureaucratic hurdles and delay urgent financial responses to local needs. The balance between efficient fund management and local government autonomy remains a significant debate in discussions on this bill.